‘Sell America’ Trade Picks Up After New Trump Threats on Fed

Summary

WSJ What’s News: ‘Sell America’ Trade Picks Up After New Trump Threats on Fed

Episode Release Date: April 21, 2025
Host: Pierre Bienime
Produced by: The Wall Street Journal

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Market Downturn Amid Trump’s Fed Criticism and Trade Tensions

In the latest episode of What’s News, host Pierre Bienime opens with a stark overview of the U.S. financial markets reacting negatively to President Donald Trump's renewed criticisms of the Federal Reserve. Trump’s recent social media post at [01:00] demanded lower interest rates, stating, “costs are trending downward and the economy could slow, unless Mr. Too late.” This aggressive stance led to significant market turbulence:

• Stock Market Declines: The Dow Jones Industrial Average plunged nearly 1,000 points, marking the index’s worst April performance since 1932. The Nasdaq suffered the largest drop, falling approximately 2.6%, with major tech firms like Nvidia and Tesla leading the losses. The S&P 500 closed down by about 2.4% ([01:30]).

• Currency and Commodities: The U.S. dollar reached multi-year lows against major currencies, while gold prices surged to record highs ([01:30]).

• Treasury Yields: Yields on longer-term Treasuries increased, reflecting investor anxiety over the economic outlook ([01:30]).

US Mega Banks at Risk in Escalating Trade War

Pierre Bienime engages in an in-depth discussion with columnist Telus Demos at [02:35] about the potential collateral damage to American mega banks amid the ongoing global trade tensions:

Impact of De-Globalization
Telus Demos explains that the Trump administration’s push for de-globalization aims to reshore business activities to the U.S., potentially reducing the necessity for multinational banks that facilitate international trade. “In a de-globalized world, US Banks are going to ultimately find themselves in the crosshairs,” Demos notes ([02:35]).

Resilience of US Banks
When questioned about the resilience of US banks, Demos suggests that in the short term, these institutions remain critical partners for companies adjusting to new tariffs. However, long-term shifts in trade policy could erode their global dominance ([03:34]).

European Banking Strategies
Demos highlights efforts within the European Union to strengthen domestic banks. Citing former ECB head Mario Draghi, she outlines strategies to enhance Europe’s capital markets, potentially reducing reliance on U.S. banks for investment and fundraising ([04:20]).

Global Trade Impacts: South Korea Feels the Heat

The episode transitions to preliminary trade data from South Korea, revealing that Trump’s new tariffs are impacting global trade dynamics. In April’s first 20 days, South Korean exports fell by 5.2% year-over-year, while imports plunged by 12%, resulting in a trade deficit. Although exports to Europe remained robust, those to the U.S. and China declined, signaling broader economic repercussions ([05:28]).

Crypto Firms Seek Bank Charters Amid Regulatory Shifts

Following a commercial break, Pierre Bienime reports on a significant trend within the cryptocurrency industry. A range of crypto firms, including Circle and Bitgo, are planning to apply for traditional bank charters or licenses, as revealed at [07:13]. This move aligns with the Trump administration’s pro-crypto stance, aiming to integrate digital currencies into mainstream finance.

Insights from Banking Reporter Gina Heeb
Gina Heeb explains that the administration’s deregulation efforts, coupled with impending stablecoin legislation, are motivating crypto companies to secure bank charters. “With deregulation in the banking space, some of them are considering going after a full bank charter that would allow them to issue stablecoin and then in addition, expand their opportunity for customers,” Heeb states ([07:45]).

Traditional Banks Responding to Crypto Competition
Heeb also covers how traditional banks are adapting to the rising competition from crypto firms. In the wake of previous crypto-related bank failures, banks are now expanding crypto services and forming partnerships to remain competitive in the evolving payments landscape ([08:45]).

Antitrust Actions Against Google and Geopolitical Moves

Pierre shifts focus to antitrust concerns, reporting that the Justice Department is urging a federal judge to compel Google to sell its Chrome web browser. This follows a ruling by U.S. District Judge Amit Mehta, who found that Google has illegally maintained a monopoly in online search and is now considering remedies to restore competition ([09:44]).

Russia’s Stance on NATO Expansion
The episode also touches on Russia’s approval of a Trump administration proposal to prevent Ukraine from joining NATO. However, Moscow remains hesitant to negotiate an immediate resolution to the Ukraine conflict, viewing NATO expansion as a direct security threat ([09:44]).

Nuclear Power and AI: A Synergistic Revival

Bel Lynn, an AI reporter, discusses the resurgence of nuclear power driven by the increasing energy demands of artificial intelligence. The Department of Energy's Argonne National Laboratory has developed an AI tool to enhance nuclear plant operations and reactor design, facilitating collaboration with tech-backed nuclear startups like TerraPower and Oklo ([10:00]).

Technological Integration
Lynn emphasizes that integrating AI with newer generations of small modular reactors allows for technological advancements without overhauling existing, aging nuclear infrastructure. This synergy is expected to extend the operational lifetimes of current plants while supporting innovative energy solutions ([11:38]).

Changing Workforce Dynamics: Young Adults Embrace Family Businesses

Addressing economic challenges in the job market, Pierre Bienime highlights a trend where young adults are increasingly joining family-owned businesses. According to payroll provider Gusto, the proportion of small businesses employing a young adult child of the owner has doubled since 2018 and risen by 13% year-over-year as of January ([12:18]).

Insights from Economy Reporter Rachel Wolff
Rachel Wolff explains that there has been a significant mindset shift among young people regarding working in family businesses. “There's more support towards that decision, we're seeing more understanding of it and really the most excitement that we've seen in a generation,” Wolff remarks ([13:01]).

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Correction Notice

Before concluding, the show issues a correction: an earlier statement about goods transiting through the Gulf of Aden was misstated. The correct figure is an estimated $1 trillion of goods passing through the Gulf annually, not daily ([13:27]).

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Conclusion

Pierre Bienime wraps up the episode by acknowledging the depth and breadth of today's discussions, from market volatility and global trade tensions to the evolving landscape of cryptocurrency and traditional banking. Listeners are encouraged to tune in for more insights in future episodes.

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This summary captures the key discussions, insights, and conclusions from the April 21, 2025 episode of WSJ’s What’s News, providing a comprehensive overview for those who missed the live broadcast.

Transcript

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[Pierre Bienime]

US markets fall as President Trump renews his attacks on the Federal Reserve. Plus how American mega banks may become collateral damage to a global trade war.

[Telus Demos]

You could see countries saying, you know what, this is how we're going to fight this trade war. You've got to stop doing business with an American bank today.

[Pierre Bienime]

And why cryptocurrency firms want to start acting like banks. It's Monday, April 21st. I'm Pierre Bienname for the Wall, calling in for Alex Osola. This is the PM edition of what's News, the top headlines and business stories that moved the world today. The Sell America trade picked back up today. U.S. stocks fell, the dollar hit fresh multi year lows against major currencies. Yields on longer term Treasuries rose and gold surged to another record high. Markets are on edge about President Trump's tariff war as well as his threats to fire Fed Chief Jerome Powell. In a post on social media today, Trump demanded lower rates saying costs are trending downward and the economy could slow, quote, unless Mr. Too late. A major loser lowers interest rates now. The dow dropped almost 1,000 points. The index is on pace for its worst April since 1932. The Nasdaq took the biggest hit falling around 2.6%. Big tech shares fell with Nvidia and Tesla leading the losses. The S&P 500 closed about 2.4%. While the US imports more manufactured goods than it exports, it runs a big surplus in one notable financial services. According to dealogic, last year US banks grabbed the top five spots for investment banking revenue worldwide and were seven of the top 10. So when it comes to a global trade war, US megabanks could become collateral damage. Heard on the street columnist Telus Demos has the story. So tell us, how is it exactly that American banks could lose out on business overseas?

[Telus Demos]

Well, the de globalization that is part of the Trump administration's agenda would like to see more activity reshored in the U.S. that means that maybe there are fewer kind of truly multinational companies, right? There are companies that produce things in the US and they sell it to Americans. There are companies that produce things in Europe and sell it to Europeans. In a world in which more companies are like that, there is maybe less of a need for a multinational bank that can help facilitate that sort of thing. Now, that doesn't happen overnight, but in the long run, in a de globalized world, US Banks are going to ultimately find themselves in the crosshairs. Jamie Dimon, the chief executive of JPMorgan Chase, used that word right? He said, we will be in the crosshairs. That's what's going to happen. Some clients or some countries will feel differently about American banks and we'll just have to deal with that.

[Pierre Bienime]

You mentioned that this isn't a process that will happen overnight. What kind of resilience might US Banks enjoy?

[Telus Demos]

US Banks are still going to be Ford now, the first call for a lot of international companies when they run into trouble. So if US Companies are having to rewire themselves for tariffs that are coming in the short term, they are probably calling the same bank that they bank with today, which might be an American bank, and saying, hey, we were getting this from China. Can we get this from somewhere else? But until we start to see people really settling in and betting in for a long term kind of change in tariff policy, you will probably still see short term defensive, tactical things that companies are doing and that probably plays into the hands of their existing partners, which are US Banks and who would maybe.

[Pierre Bienime]

Pick up the pieces of this global market share for underwriting for all kinds of financial services and banking.

[Telus Demos]

There was an interesting report that came out recently. The former head of the European Central Bank, Mario Draghi, put together a lot of ideas that have been bubbling around in the European Union for a long time. And among them is of how to strengthen that union. And one of them is to improve the depth and kind of diversity of Europe's markets for companies raising money, right? Like today, a lot of European companies, if they want to get a bank loan, they go to their local bank. If they want to borrow from investors, they go through a US Bank. A, that's because US Banks are the biggest capital markets banks in the world. But B, because they can go to the U.S. market, right? They can sell bonds in the U.S. they can go public in the U.S. things like. But what Mario Draghi's message was is that Europe needs to get its act together and start to develop more of those muscles and abilities. And so if Europe really gets its act together and says, okay, let's deepen and improve our banking and capital markets, maybe European banks re emerge as like domestic champions. That doesn't mean that they're going to necessarily become top investment banks in other parts of the world, but maybe just domestically they will begin to take up more of that business.

[Pierre Bienime]

Heard on the Street. Columnist Telus Demos Telus, thanks so much.

[Telus Demos]

Thanks for having me.

[Pierre Bienime]

Meanwhile, preliminary trade data out of South Korea suggests that the effects of President Trump's new tariffs are starting to be felt across the world. In the first 20 days of April, exports fell 5.2% from a year earlier. Imports plunged 12%, leading to a trade deficit. While South Korean exports to Europe continued to grow. In the first few weeks of April, those to the US And China declined. The data from its customs office came as Seoul gears up for high level tariff negotiations in Washington this week. Coming up, why crypto firms are looking to act more like banks. That's after the break.

[Telus Demos]

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[Telus Demos]

See for [e-mail].

[Pierre Bienime]

We exclusively report that a host of crypto firms, including Circle and Bitgo, plan to apply for bank charters or licenses. That's according to people familiar with the matter. Other people said the crypto exchange Coinbase Global and Stablecoin company Paxos, are considering similar moves. That comes as the Trump administration seeks to incorporate crypto into mainstream finance. Gina Heeb is a banking reporter for the Wall Street Journal, and she joins me now. Gina, what is it that crypto companies want to achieve here by getting a license or a charter?

[Gina Heeb]

We have an administration that has taken an incredibly friendly stance toward crypto Trump has promised to make America a bitcoin superpower. So with that, a lot of deregulation in this space is expected. And then at the same time, we also have stablecoin bill moving through Congress that would require certain licenses or charters to issue stablecoin. So some of these companies are trying to get ahead of that and positioning themselves to get these more narrow stablecoin licenses. But at the same time, when you have deregulation in the banking space, some of them are considering going after a full bank charter that would allow them to issue stablecoin and then in addition, expand their opportunity for customers. They could start taking deposits or start making loans if they were to get a bank charter as well.

[Pierre Bienime]

And what are banks themselves doing in response to this possibility of crypto cutting in on their business?

[Gina Heeb]

Some banks are trying to play catch up a bit here because a couple of years ago we of course had the collapse of FTX and a couple of very crypto friendly banks that also went down. And the traditional finance world really stepped away from crypto in the aftermath of that, and especially banks which are highly regulated. And we're getting informal warnings from regulators to stay away from this space after all of that happened. So now some of them are coming back because of this more friendly regulatory approach and because crypto is increasingly being seen as a potential competitor to them. So they are looking to expand crypto services, such as custody in this space or even partnering with crypto firms to just try to catch up and make sure they can stay competitive in a payments landscape.

[Pierre Bienime]

That was Wall Street Journal banking reporter Gina Heap. Gina, thanks so much.

[Gina Heeb]

Thank you for having me.

[Pierre Bienime]

In other news, the Justice Department is urging a federal judge to force Google to sell its Chrome web browser, loosening the company's grip on the search engine market. U.S. district Judge Amit Mehta ruled last year that Google has illegally maintained a monopoly in online search, and he has set aside three weeks to hear arguments and testimony over what remedy he should impose to restore competition. Google has long argued that it competed fairly to achieve its success, and has told Meta that the Justice Department's remedies proposal will hinder innovation and harm consumers. News Corp. Owner of the Wall Street Journal, has a commercial agreement to supply content on Google platforms, and Russia said today it was pleased with a Trump administration proposal to bar Ukraine from joining the North Atlantic Treaty Organization. But Moscow remains uncommitted to reaching a quick deal to end its war in Ukraine. Russia has long claimed that Ukraine joining NATO is unacceptable, viewing it as a direct threat to its security and an encroachment into what it considers its sphere of influence. The US is awaiting Kyiv's response, expected during a meeting with Ukrainian and European officials in London later this week. Ukrainian President Volodymyr Zelenskyy said today his country was ready to move constructively toward an end to the conflict. Nuclear power is making a comeback driven by the growing energy demands of artificial intelligence and AI itself could help better manage the nuclear plants that in turn contribute to powering it. The Energy Department's Argonne National Laboratory based in Illinois has developed an AI based tool that can help operators run plants and assist with reactor design. AI reporter Bel Lynn told our Tech News Briefing podcast that Argonne wants to offer the tool for new tech forward nuclear companies like the Bill Gates founded TerraPower or the Sam Altman backed nuclear startup Oklo.

[Bel Lynn]

It's a lot easier to add new technology to newer builds to the sort of newer generation of small modular reactors and companies that are hoping to bring nuclear power online rather than updating existing nuclear power plants, some of which may be aging out of Argonne, for instance, is looking to these companies like TerraPower and Oklo, which are backed by big tech and big tech personalities. But there's also a hope that the existing nuclear plant providers will be wanting to upgrade their plants as their lifetimes become extended because of the greater need for nuclear power.

[Pierre Bienime]

And you can hear Bell's full interview on today's episode of Tech News Briefing. The cooling US Economy is making it tougher for young would be workers to land an entry level job. That generation is taking a bigger interest in joining the family business. As a result, it's a welcomed prospect for many older business owners anxious to make succession plans. According to an analysis by payroll provider Gusto, the share of small businesses that employ a young adult child of an owner has doubled since 2018 and is up 13% year over year as of January. On our your Money Briefing podcast, economy reporter Rachel Wolff said young people have changed their thinking about joining mom or dad at work.

[Rachel Wolff]

There's definitely a mindset shift from a decade ago. The analysts I spoke to told me what you saw before was that people really tended to stigmatize returning to their family business. There was this sense that it was taking the easy way out. They wanted to strike out on their own. Now we're seeing a change. We're seeing more support towards that decision, we're seeing more understanding of it and really the most excitement that we've seen in a generation.

[Pierre Bienime]

And you can hear more in tomorrow's yous Money Briefing podcast. Before we go, heads up, we made a correction to this morning's episode. We'd said an estimated $1 trillion of goods transits through the Gulf of Aden daily, when it's actually yearly. And that's what's news for this Monday afternoon. Today's show was produced by Anthony Bansi with supervising producer Michael Cosmides. I'm Pierre Bienime for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.